Vietbank offered more than 100 million shares, increasing its charter capital to VND5,780 billion

DNHN - The State Securities Commission has awarded Vietnam Thuong Tin Commercial Joint Stock Bank (Vietbank) a certificate of registration for the public offering of additional shares to expand its charter capital.

Accordingly, Vietbank will offer 100.3 million shares to existing shareholders to increase its charter capital by 21%. This means that for every 100 shares owned, shareholders will be able to purchase an additional 21 new shares.

The share price in this offering will be equal to the par value of VND10,000 per share. Within 90 days from the date of the State Securities Commission's issuance of the offering permit, Vietbank must distribute the registered number of shares. The offering consultant is Rong Viet Securities Joint Stock Company.

After this issuance, Vietbank will continue to complete the necessary procedures to properly implement the capital increase roadmap approved by Vietbank's General Meeting of Shareholders and the State Bank.

This charter capital increase will help Vietbank enhance its financial capacity, and strengthen its safety ratios in operations, including the capital adequacy ratio (CAR), especially since Vietbank has completed and applied all three pillars in accordance with Basel II standards.

In addition, the capital increase will help increase medium- and long-term capital sources, creating conditions for the bank to invest in infrastructure, expand its network of operations, and meet the demand for credit growth in the coming years.

Previously, on July 25, 2023, the State Bank also approved Vietbank to increase its charter capital from VND4,777 billion to VND5,780 billion through a share issuance to existing shareholders. The entire capital of VND1,003 billion raised is expected to be used for business operations, bond investment, ensuring compliance with safety ratios in business operations, and generating profits for Vietbank.

To be approved, Vietbank has always strictly complied with the regulations of the law and the State Bank on safety ratios, debt classification, risk provisioning, and risk management, and effectively controlled the portfolio of debts and bad debts.

In addition, the bank has strengthened credit risk control measures, conducted customer due diligence prior to lending, and enhanced supervision and monitoring during and after lending to ensure credit quality and minimise the occurrence of bad debts.

Vietbank has also directed credit to small, effective, and short-term loans, focusing credit on production sectors and priority sectors in line with the policies of the Government and the State Bank, and strictly controlling high-risk sectors.

In particular, in 2023, Vietbank has implemented flexible business methods and enhanced the application of digital technology to bring satisfaction and a positive experience to customers, improve the quality and efficiency of human resources, optimise capital usage, strengthen risk management, and debt handling.

Vietbank's orientation in 2024 is to increase its scale, operate safely, comply with regulations, and enhance its financial capacity. At the same time, the bank will focus on investing in building a solid foundation in terms of personnel, technology, and risk management following international standards to meet the requirements for a stable and sustainable long-term development strategy in the next phase.

PV